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RIYADH: Saudi banks’ outstanding loans reached SR 3.2 trillion ($849.7 billion) in June, marking a 15.8 percent increase compared to the same month of 2024. 

According to data from the Saudi Central Bank, known as SAMA, the majority of this growth, some 76 percent, was driven by corporate lending, which totaled SR1.8 trillion.

Loans to individuals accounted for the remaining SR1.4 trillion, although their share declined from nearly 50 percent a year earlier to about 44 percent. 

Business loans posted a 22.5 percent year-on-year increase, reflecting vigorous demand across sectors tied to Vision 2030 initiatives. Real estate emerged as a standout, with banks extending SR384 billion in financing, making up nearly 22 percent of corporate loans, and reflecting a 39 percent year-on-year jump. 

Wholesale and retail trade ranked second, comprising 11.92 percent of corporate lending at SR213.1 billion, reflecting an 8.43 percent annual rise. The electricity, gas, and water supply sector followed with an 11.15 percent share, or SR199.31 billion, while manufacturing accounted for 10.76 percent, reaching SR192.25 billion.. 

Real estate and transportation and storage recorded the highest growth rates at 39.9 percent, while health and social work activities grew 35.4 percent to SR26.9 billion, and the financial and insurance sector climbed 34 percent to SR167.5 billion, according to SAMA’s June figures. 

The financing increase underscores banks’ critical role in propelling Vision 2030’s economic diversification. They are instrumental in funding giga‑projects, infrastructure expansion, transport developments, housing initiatives, and social services. 

Real estate lending boom stems from rising homeownership goals, urban expansion, and megaprojects such as NEOM, further bolstered by regulatory advancements enhancing transparency and efficiency in property finance. 

Digital innovation and fintech are also key enablers of this transformation. Electronic payments accounted for 79 percent of all retail transactions in 2024, up from 70 percent in 2023, as part of SAMA’s drive to push digital adoption across the economy. 

By the end of the second quarter of 2024, the number of fintech firms operating in ������Ƶ had climbed to 224, surpassing the interim target of 168 under the Financial Sector Development Program.

That momentum continued through the year, with the sector expanding to 261 licensed companies by December, according to the program’s annual report. 

As of mid-2025, the fintech ecosystem has grown further, with 317 firms active in the Kingdom, including 86 that have secured funding and raised a combined $4.66 billion in venture capital, according to a July report by Tracxn. 

This ecosystem is powering digital banking, embedded finance, digital wallets, and fintech solutions that make banking and payments more accessible, efficient, and aligned with modern consumer needs. 

The government’s long-term target, as outlined in the Financial Sector Development Program, is to scale up to 525 fintech companies and create more than 18,000 sector-related jobs by 2030, reinforcing the Kingdom’s drive to position itself as a regional hub for financial innovation. 

The robust lending landscape translated into strong earnings across the banking sector. The Saudi National Bank reported a second-quarter net profit of SR6.1 billion, up 17.3 percent year on year, citing increases in operating income and reductions in impairment provisions, according to its filings on Tadawul. 

Al Rajhi Bank posted SR6.15 billion in profit, a 31 percent rise, driven by strong financing and investment income despite a rise in provisioning. 

Other banks also recorded impressive gains. Saudi Awwal Bank saw net earnings of SR2.13 billion, up 9.5 percent, while Banque Saudi Fransi earned SR1.30 billion, rising 21 percent, based on Tadawul disclosures.  

Sector-wide, second-quarter combined profits topped SR23 billion, marking the strongest quarterly earnings in Saudi banking history. 

SINGAPORE: Oil prices rose on Monday after White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and had to stop.

Brent crude futures rose 30 cents, or 0.46 percent, to $66.15 a barrel by 9:29 a.m. Saudi time while US West Texas Intermediate crude was at $63.19 a barrel, up 39 cents, or 0.62 percent.

Navarro said in an opinion piece published in the Financial Times that if India wants to be treated as a strategic partner of the US, it needs to start acting like one.

“India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro said.

The market’s swift rebound after Navarro’s comments highlights how fragile sentiment is. Any sign of Washington tightening its stance on India’s Russian oil purchases reintroduces a risk premium, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.

“The US adviser’s sharp words on India’s Russian crude imports, paired with postponed trade talks, revive concerns that energy flows remain hostage to trade and diplomatic frictions, even as peace prospects in Ukraine brighten,” Priyanka added.

Oil prices fell during early Asia trading after US President Donald Trump met Russian President Vladimir Putin in Alaska on Friday and emerged more aligned with Moscow on seeking a peace deal instead of a ceasefire first.

Trump will meet Ukrainian President Volodymyr Zelensky and European leaders on Monday as the US president presses Ukraine to accept a quick peace deal to end Europe’s deadliest war in 80 years.

“The status quo remains largely intact for now,” RBC Capital analyst Helima Croft said in a note, adding that Moscow would not walk back territorial demands while Ukraine and some European leaders would balk at the land-for-peace deal.

On Friday, Trump said he did not immediately need to consider retaliatory tariffs on countries such as China for buying Russian oil but might have to “in two or three weeks,” cooling concerns about a disruption in Russian supply.

China, the world’s biggest oil importer, is the largest buyer of Russian oil, followed by India.

Investors are also watching for clues from Federal Reserve Chairman Jerome Powell’s comments at this week’s Jackson Hole meeting regarding the path of interest rate cuts that could boost stocks to further records.

“It’s likely he will remain noncommittal and data-dependent, especially with one more payroll and Consumer Price Index (CPI) report before the September 17 FOMC meeting,” IG market analyst Tony Sycamore said in a note.